Fragile business

Dealing in glassware along the Pacific rim is a risky business. In downtown Seattle WA the William Traver Gallery lost all its $400k fine art glassware stock in the late-Feb earthquake. Of course operating a big suspension bridge over the Golden Gate is probably no safer. We always thought they should have a big insurance policy or simply a big reserve fund, but perhaps they figure Uncle Sam and Sacramento would rustle up the money if a big quake puts them into the sea. And they don’t do proper depreciation in their accounts. The management of the bridge must thank the Lord they don’t have shareholders. In the private sector people go to jail for far less.

New GASB accounting standards are forcing some small improvements in scandalously low standards of accounting at many government owned business entities.